In December, Sovereign Man's Chief Investment Strategist advised our Sovereign Man Confidential members on a position to take on the RMB. This week we found that this trade is already up by as much as 300%.

Now looking at the latest news from China we see that our advice still stands, and even stronger than before.

The Chinese central bank, People's Bank of China, issued a press release announcing the authorization of direct trading between the renminbi and the euro on the inter-bank foreign exchange market.

This is huge. The euro is the second most traded currency in the world, after the US dollar. The European Union is already China's biggest trading partner and this is a major step in further increasing trade and[...] Click here to continue reading

The price of a Big Mac is going up in China by 7%. In fact, Chinese state media outlets are reporting that prices for all items at McDonalds fast food restaurants across China are going up by 1/2 to 1 renminbi (RMB), roughly 7.5 to 15 US cents.

Greetings once again from Mexico; I'm sure many who listen to the mainstream press would be amazed to find that I have spent 48 hours on the ground here with nary a swine flu infection nor simple mugging to report.

I'm sitting in a comfortable, overstuffed leather chair this morning typing away at this letter while a team of local women give me a traditional Thai foot massage. 30 minutes in the chair will set me back about $4, and I can't think of a better way to part with my money.

I spend a great deal of my time on the road, traveling around the world in search of opportunity. I put boots on the ground while I'm on the hunt and end up screening a tremendous amount of both business and investment ideas.

Some of these ideas make the cut, and we take the concept further. Others don't.

I spent the better part of my day today at a small conference attended by many of Shanghai's wealthy, plus their lawyers and accountants. Considering the subject material is highly frowned upon by the government, I was surprised that so many were in attendance.

So what was the topic of discussion at today's event? Second citizenship. Specifically, the St. Kitts second citizenship program.

I have the temporary misfortune today of feeling a bit under the weather. I've always wondered how such an expression came to pass, but if it is meant to be any sort of metaphor, my 'weather' is something like a category five hurricane.

As a consequence, I was unable to attend this week's Asia gold conference which took place in Hong Kong; fortunately, though, my friend and colleague Christine Verone was in attendance, and[...] Click here to continue reading

Thanks to an unexpected computer crash, I've spent the majority of my day trolling around one of Shanghai's infamous technology marketplaces, where just about everything you see is a knock-off.From my condo in Shanghai's Pudong district, it's about a 15 minute metro ride to "Pacific Digital Plaza," which ironically is just a stone's throw from Best Buy. The building is five floors of wall-to-wall electronics-- if it has an on/off switch, you can buy it[...] Click here to continue reading

The sight of nuclear missiles being paraded down the street in a perfectly crisp formation is simultaneously revolting and awe-inspiring. Yet the Chinese government knew exactly what it was doing when it orchestrated its most prominent display of military hardware in the middle kingdom's history.

This week is China's biggest holiday week of the year, celebrating 'National-day,' when Mao's communist revolutionaries took control of the country. The government kicked off festivities earlier this week[...] Click here to continue reading

While I was en route to China, somewhere over the Sea of Japan, gold hit a record high on 'concerns' about the long-term value of the dollar.

Frankly, 1974 was probably the time to be 'concerned' about the long-term value of the dollar. The remaining institutional investors who are only now finding reasons to be concerned about the dollar are probably the same ones that thought Ford and Fannie Mae were bargains last year.[...] Click here to continue reading

"Dear Simon- Jeff Clark from Growth Stock Wire recently wrote that 'China is a fraud' and that 'If Americans aren’t buying big-screen TVs or $100 sneakers, Chinese stocks are ultimately headed for trouble.' I would like your opinion on his view." Great question. I like Jeff Clark and generally agree with his analysis... but like I said in Monday's essay, I am puzzled that a few notable figures in the financial community are bearish on[...] Click here to continue reading

I'm flipping through channels at 1am here in Seoul, and do you know what I see? Math problems-- nutty professors, Korean-style, working out complex partial differential equations and geometric progressions with the intensity and flair of a concert pianist.

In fact, it's not just one channel... it's five, roughly 20% of the entire late night channel line-up.

If you're an entrepreneur and want to make an absolute fortune, you need to head to Asia.

The last several weeks on the ground here have only reinforced my long-held premise that Asia's economies represent vast, wide open potential. These economies are growing, and shall continue to grow thanks to solid macroeconomic fundamentals like a large pool of savings, lack of reliance on credit, and dual trade/budget surpluses.

There are a lot of people in the financial community, including a few notable figures, that are highly bearish if not outright suspect of China's growth.

I'm always puzzled by this opinion. I've been to the country several times before and keep regular tabs with influential players and insiders, and my own assessment has always been quite positive on the country.

Today I found out first hand how much Chinese are looking to avoid taxes.

I attended a conference today sponsored by the government of Labuan, Malaysia at the Grand Hyatt here in Shanghai. Labuan is Asia's newest financial center, and the government there is heavily courting wealthy Chinese investors and businesses to migrate their capital. There are a lot of rich Chinese businessmen who are looking for a way to reduce their tax burden,[...] Click here to continue reading

In full disclosure, I am heavily biased. Hong Kong is one of my favorite cities in the world.

Remember those '7 expat categories?' well, I am definitely a mix of several... maybe all. But Hong Kong ticks all the boxes for me, and always has-- I've been coming here for years and love it more every time.

It normally takes me less than five minutes to pack, even for a three week trip. In this case, though, I'm having a tough time-- too many climate zones in Asia, too many events. I need to cram SCUBA gear, beach clothes, professional attire, and formal wear all into one little suitcase...

... plus leave plenty of room for all the custom suits I'm going to have tailored.

When I think about Asia growth and investment opportunities, places like Singapore, Thailand, Vietnam, and even the Philippines come to mind. But lately, in my regular discussions with key Asia contacts-- brokers, sovereign wealth fund analysts, etc., one place keeps coming up again and again.

Mongolia.

Mongolia is one of the largest, most resource rich countries in the world with a population smaller than Panama-- that's[...] Click here to continue reading

I'm taking a quick break in Miami to see friends and family before heading down south again to dive head first into a large, complicated, and very exciting business dealing... so next week I will be writing to you from Panama once again.

While I am in Panama I plan on putting the finishing touches on the Black Paper that I have mentioned before-- this will be a "who's who" list of banks, brokers,[...] Click here to continue reading

It's no secret that China is already starting to dominate the world economy.

Understanding the country, its culture, and its economic infrastructure, however, is a daunting task, particularly for outsiders. Official reports and media accounts are hardly worth basing an investment opinion on-- it's critical to have boots on the ground.